General car insurance is made up of the basic elements found in most auto insurance policies. Those elements are Liability Insurance, comprehensive and collision insurance, and Medical coverage. Understanding how insurance works and the definitions of various terms can help the consumer to pick and choose coverage plans that meet the need of the individual. One key point that will also be discussed in this article is the concept of value when it is compared to the price.

General Car Insurance-Value Verses Price:

Consumers have been trained to look at the price of something to find its value. That is not always the best way to find the best value, and this is especially true when comparing insurance coverages across different insurance providers. The problem with comparing different products based on prices is that unless the products are being compared are identical then price is not an accurate reflection of true value. Price comparisons work well if comparing the same brand of shampoo between different stores. If the products are the same, then price is a good indication of value. With insurance, the products offered as coverage are rarely the same, as such, using price to find value is false logic. This is important because insurance should be chosen based on risk and not just price. The reason we buy general car insurance is to protect ourselves and our investment from legal loss. If consumers use price as the sole means of determining the value of an insurance policy, then they have likely not compared coverage. This may leave them exposed if a loss occurs. Most people do not find out that they are under-insured until they experience a loss. That is the worst time to discover that your policy is not completely protecting you. Think about this as we continue through this article.

General Car Insurance-Standard Types of Auto Insurance Coverage:

As mentioned above, there are three types of car insurance. The first type is liability insurance coverage. Liability insurance coverage is a type of insurance that pays for other peoples things you may damage while driving. The crux of this type of coverage is found in “who is at fault” of the accident report. Accident reports may be written by law enforcement or by an insurance underwriter. TIP: If in an accident take down all the information you possibly can. Take photographs, of the accident, of any clues on how the accident may have occurred, etc. This is important because many accidents come to do what you say verses what someone else may say. Nobody wants to be “at fault” and people will be very dishonest in casting blame. Protect yourself by gathering evidence.

The second type of general car insurance coverage is Comprehensive and Collision insurance coverage. These are two types of insurance coverage that are often lumped together. Comprehensive covers damage to a vehicle that did not occur during an accident with another vehicle. A broken wind-shield, theft, vandalism, even hitting a deer is damage that is covered under comprehensive insurance. Collision insurance coverage pays to have the damage done to your car repaired if you have an accident involving another car or running into a ditch, etc. Together these two insurance covers provide what is considered a complete damage protection to your car.

The third type of car insurance is Medical insurance coverage. Medical insurance coverage pays for medical care for passengers and yourself if an injury should while inside of your car. Consumers should realize that this is very basic set of medical coverage that is not designed to compete with medical insurance or health insurance. This type of coverage is usually mandated by each state as a requirement of owning a car, operating a car, etc.

General Car Insurance-Comprehensive and Collision Insurance Coverage:

Comprehensive and collision insurance cover come together to form a complete damage protection for your automobile. One protects against accidental damage that does not involve auto accidents while the other protects against damage that occurs during an automobile accident. This is a part of an insurance policy where the consumer can increase the limits of coverage. If the vehicle is financed, a minimum amount of coverage will be demanded by your lender. This is also a section of policy that may come with its own deductible. Choosing the coverage range for comprehensive and collision insurance needs to be done with care. This is because this section of your car insurance can raise the price of monthly premiums a great deal. If comparing different policies, make certain that the comprehensive and collision coverages are the same. This can be a great indicator of cost verses value. It is recommended that consumers compare at least three insurance companies, the standard would be preferably five. If your car is older or does not have a high value, then consider dropping this coverage if possible. It is sometimes possible to buy a vandalism policy, as opposed to comprehensive and collision policies.

General Car Insurance-Liability Coverage:

Liability insurance is very important. This is part of your general car insurance that pays for damages if you are found at fault in an accident. There are state minimum limits that are imposed on drivers but that minimum coverage does not necessarily mean you are going to be fully covered. The limits of insurance placed on liability coverage are the maximum that the insurance company will pay when a claim is made. If the claim is more than your insurance coverage, then you will be liable for the balance. This part of general car insurance also comes with its own deductible. It is better to have a higher deductible and more liability insurance coverage then to be left owing someone a pocket full of money. Higher deductibles will lower your monthly premiums so consider this a trade off for paying for higher coverage.

General Car Insurance-Medical Coverage:

Most states now have a minimum medical insurance coverage for drivers to carry. Higher coverage is better because medical care is expensive. Consult with your health insurance policy provider, as to how they help to cover you in automobile accidents. Some health insurance policies pick up where you car insurance coverage leaves off. You may receive a premium break by maintaining a certain level of medical car insurance.

General Car Insurance- Conclusion:

Consumers who are looking to compare different automobile insurance policies should first make sure the polices are as identical as possible. Compare the value of the insurance being offered by looking closely at deductibles, and coverage limits, before comparing policies based on prices or premiums. Consumers should also evaluate their insurance needs so that they understand what the risks are when they drive. This will allow consumers to choose coverage that best fits their needs. The purpose of having insurance coverage for your automobile is to protect you from loss through law suits, medical injury, and damages to your car. The risk of owning a car is what should be compared before comparing price. The value of an insurance policy is found in the policy’s ability to protect you. It is also a good idea that consumers consult with their health insurance provider to see how the medical car insurance and their personal health insurance work together. In closing, look for value in the products that you purchase before evaluating them for price or cost. The result will help you the consumer to save money while still finding the best value for the dollar.

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